This isn't exactly fresh news but I didn't see it on any major blogs or a cblog about it.

Demon's Souls 2, the rumored follow up to one of the best RPGs this generation, isn't happening. A rumor about a challenging game with interesting gameplay being developed by From Software had been since circulating back in February which led many to believe said game was the follow up to the surprisingly successful original. This rumor was sadly debunked nearly two weeks ago by From's director Hidetaka Miyazaki and producer Takeshi Kajii in while they were doing a podcast.

In it they reportedly said that a sequel to Demon’s Souls is not in development nor is planned for the future.

Unless they're lying to pull out a couple surprises at E3 (Read:Denial is the first step) this is disappointing news. Here's to hoping they do something like DLC with that broken archstone...

Dtoid won't let me post as link in the blog post at all so it'll be in the comments below.